Production of production climbed high in January to six months when heavily weighted food products recovered, the Philippine Statistics Authority (PSA) reported Friday.
Preliminary data from the PSA showed that industrial production, measured by the volume of the production index (VOPI), increased by 3.2% in January by 3.2%, a change of the decrease of 0.3% in the same month last year. It was also collected compared to the increase of 0.4% in December.
The January print marked the second consecutive month of production extension. It was the fastest growth in six months or since the expansion of 7.4% in July last year.
Monthly to month, the VOPI of production grew by 1.8%, a change of the fall of 1.8% in December. Seasonal factors strip, the output slowly defeated by 1.5% compared to the growth of 4% of the previous month.
For comparison: the Philippines in S&P Global Manufacturing Purchasing Managers’ Index (PMI) fell to 52.3 in January of 54.3 in December, the weakest since the 51.2 included in August 2024.
A PMI lecture above 50 shows improvement of the operating conditions, while a lecture below 50 shows the opposite.
The PSA attributed the growth of January to the performance of food products (9.4% of -0.3% in December), machines and equipment except electric (62.1% of 40.9%) and electrical equipment (45.6% of 18.2%).
In a telephone interview, the Filipino Chamber of Commerce and Industry (PCCI) Honorary Chairman Sergio R. Ortiz-Luis, Jr. Admittedly, the VOPI decline in items such as computers, electronics and optical products such as seasonal, which was not seasonal, was the negative performance of food products in December.
Food products are good for the largest weight in VOPI with 18.7%.
“The robust growth of the VOPI can be attributed to the speed reductions established by BSP (Bangko Sentral NG Pilipinas) in the previous year, so that these production companies could expand,” said Rischelle Alysha T. Legaspi an economist of Oikonomia, Inc. in an e-mail.
The central bank reduced the loan costs with a total of 75 basic points (BPS) to 5.75%last year. The BSP left its policy institutions untouched last month and repeated that it is still in a relaxation of the mode, which indicates a possibility of at least 50 BP-snit this year.
“The context of the election year usually indicates high optimism within the production industry. This can not only stimulate employment, but also production. Said Mrs. Legaspi.
The average capacity use percentage for the production section in January was reported at 75.9%, slightly higher than 75.6% compared to the previous month.
Nineteen of the 22 industrial divisions booked at least 80% capacity use. – John Phoebus G. Villanueva